In an effort to help Small and Medium Enterprises (SMEs), Wales will be launching a new mutual credit system.
The Celyn to Build on Sardex Idea
Wales plans to build a cryptocurrency and blockchain as well.
According to a report from Business Cloud, Wales studied and identified the benefits of using a crypto platform for these purposes.
The new system is dubbed “the Celyn” and Business Cloud wrote, in part:
“It is hoped that the Celyn could boost the country’s economy by £250 million over the next decade.”
SMEs reportedly make up a large part of the Welsh economy. Therefore, anything which boosts them, including a mutual credit system built on cryptocurrency, will be good for Wales overall.
For many in Wales, like anywhere else, the new system could be their first genuine interaction with cryptocurrency.
Eurozone Going Cryptozone?
The Celyn is based on the idea of the Sardex, a currency and system built on an Italian island. According to the Financial Times:
“To understand how Sardex works, you have to abandon much of what you may think you know about money. There is no bank that prints Sardex notes; no algorithm that generates Sardex digital coins. Instead, it functions as a system of mutual credit: each firm begins at zero, earning the digital currency — equivalent to but non-exchangeable with the euro — as it offers goods or services to others in the network. Companies may go into debt but only up to a certain limit, determined by what they can offer the other participating firms. Crucially, there is no interest on Sardex; it functions purely as a means of exchange. “
The Celyn will reportedly function in much the same way.
The prospect is a reminder that blockchains can be used for purposes big and small, by anyone with ambition to build them.
Wales’ neighbor the Isle of Man is one of the leading blockchain jurisidictions in the world, having a number of pro-crypto policies in place already.
Other European countries like Malta and Estonia also have a reputation for being friendly to cryptocurrency operations, while Great Britain is widely known for being a great place to do business generally.
